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Economics Model Answers Ten - 2013 (view source)

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:A positive or negative effect by a transaction on someone other than the buyer or seller.
 
:A positive or negative effect by a transaction on someone other than the buyer or seller.
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:"Externalities are positive or negative effects, not including the buyer and seller, created by a transaction." (by student CM)
    
2.  Explain what "derived demand" is, and provide an example.
 
2.  Explain what "derived demand" is, and provide an example.
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